Correlation Between BetaPro NASDAQ and BMO SPDR
Can any of the company-specific risk be diversified away by investing in both BetaPro NASDAQ and BMO SPDR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BetaPro NASDAQ and BMO SPDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro NASDAQ 100 2x and BMO SPDR Consumer, you can compare the effects of market volatilities on BetaPro NASDAQ and BMO SPDR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BetaPro NASDAQ with a short position of BMO SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro NASDAQ and BMO SPDR.
Diversification Opportunities for BetaPro NASDAQ and BMO SPDR
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BetaPro and BMO is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro NASDAQ 100 2x and BMO SPDR Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BMO SPDR Consumer and BetaPro NASDAQ is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BetaPro NASDAQ 100 2x are associated (or correlated) with BMO SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BMO SPDR Consumer has no effect on the direction of BetaPro NASDAQ i.e., BetaPro NASDAQ and BMO SPDR go up and down completely randomly.
Pair Corralation between BetaPro NASDAQ and BMO SPDR
Assuming the 90 days trading horizon BetaPro NASDAQ 100 2x is expected to under-perform the BMO SPDR. In addition to that, BetaPro NASDAQ is 1.87 times more volatile than BMO SPDR Consumer. It trades about -0.1 of its total potential returns per unit of risk. BMO SPDR Consumer is currently generating about 0.02 per unit of volatility. If you would invest 3,052 in BMO SPDR Consumer on September 6, 2025 and sell it today you would earn a total of 30.00 from holding BMO SPDR Consumer or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BetaPro NASDAQ 100 2x vs. BMO SPDR Consumer
Performance |
| Timeline |
| BetaPro NASDAQ 100 |
| BMO SPDR Consumer |
BetaPro NASDAQ and BMO SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro NASDAQ and BMO SPDR
The main advantage of trading using opposite BetaPro NASDAQ and BMO SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro NASDAQ position performs unexpectedly, BMO SPDR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BMO SPDR will offset losses from the drop in BMO SPDR's long position.| BetaPro NASDAQ vs. BetaPro SPTSX 60 | BetaPro NASDAQ vs. BetaPro Gold Bullion | BetaPro NASDAQ vs. BetaPro SP 500 | BetaPro NASDAQ vs. BetaPro SP 500 |
| BMO SPDR vs. BMO Short Term Bond | BMO SPDR vs. BMO Canadian Bank | BMO SPDR vs. BMO Target 2027 | BMO SPDR vs. BMO SPDR Real |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |